Optimization Research On Government Function To Support Shishi City Textile And Garment Enterprises' Financing

Textile and garment industry as a traditional industry in China plays an important role in developing national economy. Especially as the center of casual wear in China, Shishi City's pillar industry is textile and garment industry, which contributes over 60% of GDP. However, due to financial crisis and economic downturn, textile and garment enterprises in Shishi City meet the bottleneck of growth, so they urgently demand for government's strengthening macro control and leading transformation and upgrading in the industry. Since the Third Plenary Session of the 18th CPC Central Committee and Fourth and Fifth Plenary, economic restructuring with financial reform included was extensively carried forward, and Shishi City is a pilot area that realizes comprehensive reform for financial services provided to real economy. Under the influence in the economic climate, the most prominent and direct reason for development jam is financing difficulties. Shishi Government adapted a series of measures to try to solve financing difficulties for textile and garment enterprises and got positive effect, but financing difficulties remain, so the government should further optimize its policy support. Domestically, there exist some researches on government functional support to SMEs' financing, but few researches are on textile and garment enterprises. In the paper, as the first innovation the research on textile and garment enterprises'financing difficulties will be carried out under the point of government support, and as the second innovation, the research will concrete on government support to textile and garment enterprises' financing, where the research is of theoretical and practical significance.Through analysis on market failures, government intervention, information asymmetry and transaction costs, it will put forward the importance of government support to textile and garment enterprises'financing; And through analysis on the current financial status of the textile and garment enterprises in Shishi City and on the reason for financing difficulties, it will elaborate the practice and effect for Shishi government's supporting to textile and garment enterprises'financing and will further analyze the shortcoming existed in government support. Moreover, in the paper through analysis on advanced experience and inspiration learn from foreign government's supporting to SMEs' financing, it will propose countermeasures and suggestions to optimize government support to the textile and garment enterprises in Shishi City.